NEW YORK — Abbott Laboratories plans to appeal a jury's
$1.67 billion patent infringement ruling in a case involving two
blockbuster drugs that treat rheumatoid arthritis and other immune
disorders.
Late Monday, a jury in the Eastern District of Texas
found that Abbott's best-selling drug, Humira, violated a patent on
Johnson & Johnson's Remicade. The two biologic drugs each treat
arthritis by blocking proteins that cause inflammation.
Abbott said Tuesday it will appeal the ruling.
"We're
confident we'll prevail on appeal and thus we would not owe any
damages," Abbott spokesman Scott Stoffel said in an e-mail.
He
said the company's current financial guidance is not affected. Abbott
shares, however, fell almost 3 percent in morning trading.
Both
Remicade and Humira are intravenous drugs that are approved to treat a
variety of immune system-related ailments, including psoriasis, Crohn's
disease and ulcerative colitis. They work by blocking proteins called
tumor necrosis factor. When too much of that protein is present in the
body, it can cause inflammation and damage to bones, cartilage and
tissue.
Wyeth and Amgen Inc.'s drug Enbrel works in the same fashion, as does Cimzia from Belgium's UCB.
In
a note to clients, Goldman Sachs analyst Jami Rubin said the appeals
process could last for years, and the award could be reduced or
eliminated. She said Johnson & Johnson is not trying to block
further sales of Humira and the Texas jury was not asked to award
royalties on Humira sales.
Rubin believes Abbott, based in North Chicago, Ill., could afford to make the payment if it must.
Remicade
was approved in late 1999 and Humira gained Food and Drug
Administration approval at the end of 2002. Abbott says it discovered
Humira, and filed a patent, before Johnson & Johnson began the
research that lead to the discovery of Remicade. Annual sales of
Remicade are about $2 billion, and Johnson & Johnson is working on
a newer version called Simponi.
Humira is Abbott's top-selling
drug, with revenue of $4.5 billion last year. Abbott predicted sales of
up to $5.4 billion in 2009.
Johnson & Johnson, based in New
Brunswick, N.J., filed its suit against Abbott in April 2007. German
drugmaker Bayer is also suing Abbott for patent infringement, saying
Humira infringes on a patent it registered decades ago. Abbott said
Humira doesn't infringe that patent, and believes Bayer's patent is not
valid and not enforceable.
In morning trading, Johnson &
Johnson shares fell 35 cents to $56.62, and Abbott shares fell $1.40,
or 2.9 percent, to $46.42.